Snapdeal defers Rs 1,250 crore IPO plans; cites 'prevailing market conditions' as reason

Considering the prevailing market conditions, e-commerce company Snapdeal has pulled the plug on its $153 million IPO, the company told Business Today. In a statement, the company spokesperson said, “Considering the prevailing market conditions, the company has decided to withdraw the DRHP. The company may reconsider an IPO in the future depending on its need for growth capital and market conditions."  
 
Last year in December, Snapdeal filed for an initial public offering (IPO), with which it aimed to raise Rs 1,250 crore ($153 million) by issuing new shares. Several of its investors including SoftBank, Sequoia Capital India and Foxconn had planned to sell up to 3,07,69,600 shares.
 
Snapdeal had planned to invest Rs 900 crore from the IPO for organic growth initiatives and for general corporate purposes. 
 
Snapdeal was founded in 2010 by entrepreneurs Kunal Bahl and Rohit Bansal. One of the first ecommerce companies in India, the company grew significantly, became a unicorn but saw its fortunes dwindling as Flipkart and Amazon started grabbing a larger share of the market. Backed by prominent investors such as Bessemer Venture Partners, Kalaari Capital, Saama Capital, eBay, and a few others, Snapdeal signed a major acquisition deal with Flipkart at a valuation of $950 million in 2015.
 

The Kunal Bahl-founded company is not the first to defer its IPO plans. Several Indian start-ups such as Ola, Droom, PharmEasy, boAt, and others have reversed their IPO plans. The last year also saw start-ups like Paytm, PolicyBazaar, Nykaa, and Zomato getting listed on BSE and NSE. 
 
Even hospitality tech start-up, OYO, had pulled the plug on its IPO but it revived it again this year. According to media reports, OYO is preparing to make a debut on the stock market in the early half of 2023. The company, however, has been tight-lipped on the timelines.

Also Read: BharatPe initiates criminal proceedings against Ashneer Grover & wife, claims Rs 88.6 crore